Apple’s Tim Cook at Center of Tax Reform Debate

5/21/2013 11:02AM

Apple paid little to no corporate taxes over the last four years, a Senate report found, a revelation that fuels the debate over whether the U.S. tax code needs an overhaul. Drew Dowell joins MoneyBeat. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... we're now seeing a live shot from Capitol Hill where Apple CEO Tim Cook will be speaking about tax reform before the Senate ... interesting timing The Wall Street Journal reports today that Apple did little to no corporate taxes over the past four years ... here to talk about this Wall Street Incorporated are ... true Dow ... so ... hope that Apple get away with this ... yellow Intersil aam ... getaway is like a sort of a ... Turkish be careful of is is all completely legal and on ... and they did any of the mission says Apple did pay a ton of taxes six billion dollars worth last year according to them ... um but but what they've done that six toward areas and a man is to create ... an offshore subsidiary that handles most of its own offshore business ... you know from Europe the Middle East Africa and Asia ... Ben ... pulled in thirty billion dollars worth of net ... income of the last four years and paid no taxes on ... an anomaly that contain up anytime soon file a tax return ... because they claim that the anti is not ... a resident of any tax jurisdiction ... so it's not in the US because a sub base in the US ... is based in Ireland ... and it's not considered ... in Ireland because is the man is from Ireland on Stuart Spanish from but it's the man from Ireland order for this ... so it sort of this state was and TV clicks tons of ... Qlik sums of money but doesn't the pay taxes ... by ... evening it at some point it does there's nothing here that is illegal uses tax avoidance not tax evasion is something that will ... to some extent problem really do ... look to build a one pence on taxes I guess but ... what are we expecting Tepco to say when he testifies ... well um you know for toys getting it sort of ... honestly it on laughing over this whole issue that the cost of Ardi been out the senators' Martin now you know making a fairly strong statements about this ... is also an eagle on the offensive and say what this does is so ... you know highlights a need for corporate tax reform and apples then you know reasonably ... of vocal about the fact its kind in whatever hundred billion dollars in cash overseas that it's not can bring it back to us because to do so would mean that would have to give up thirty five percent to the IRA so ... you know their argument is ... U S tax policy is preventing companies from green aspect of it says be put to work ... out is what Apple has done compared to what other companies have done ... well there are other companies and set up you know that a flight transferred intellectual property than jurisdictions like Ireland the son of subsidiaries in Ireland or ... the Netherlands or Bermuda and avoided paying taxes on them ... what's extraordinary here is that ... dysentery the apples that doesn't even file tax returns and that doesn't claim to be you know it somehow become sort of statements in tax terms which is ... something that sort of hard to imagine that the senator said they hadn't seen before ... actually reactors in the morning on an Apple shareholder I am happy that they're being resourceful and not not pay taxes in the dry losing my weight ... as a taxpayer us to this and I may have other feeling that we actually feel about this I mean ... but developers are producing house anyone should feel about you what you laid out well there you know there are reasons for their rational reasons for companies to behave this way it's within the law ... makes no sense to turn over money to the government they don't need to turn over to ... you know the union turned over to them ... aam ... and and and yes their consequences for taxes ... they're also consequences for like corporate strategic decision making of the might become a concern like Apple ... you know decided they're going to turn a lot more money to shareholders rather than just bringing back some the cash they have ... to decide to raise money in the bond market which ... ok that's fine now that interest rates are new to near zero but that's not something that sustainable me you know assuming we ever go back to more normalized interest rates are ... low quickly to expect anything to change as result of the students ... you know there's there's a lot of well there's a lot of there's a lot of good aam ... arguments for tax reform or for a tax overhaul ... but has caught up in the broader political maneuvering and as much as some ... in the core ... halting MDC cafe to write and thank your for causing you to read more about this on WS J dot com